Umm, I strongly recommend you get the dragon to 2 chests per battle if possible (costs 6 rage). I don't know how you're doing with the cash, but extra money will be crucial soon. A Paladin costs 1500, and if you find some cyclopses (great for no-loss victories as well) on Bolo island, you'll need the extra cash, as they are 5000 gold each - that is also provided you can get the leadership for them.
I hope you got a few items to boost your leadership in debir. Otherwise the game gets tough very quickly, especially on impossible.
EDIT: A few other things you can try:
- when you get to bolo island, go down into the catacombs, lure the R14-Gromozeka hero away from the chest and dash to take it, then return the amulet. That should spawn paladins in Debir. Oh, and don't forget to use the amulet. +50 leadership is still something.
- the phantom spell, sadly, is a long shot for a warrior. You will need the ancient amulet, or some other mana boosting item to make it effective, as you are low on mana, and a lvl 1 phantom spell won't provide a sufficient amount of paladins early on. And to boost the mana, you will need the money, as the ancient amulet (in the best case scenario) is 50k gold. The next thing that is imperative if you're going to be using phantoms is the Summoning skill. You MUST master it.
- All you need is lvl 1 in Training for the dragon, because the medals will take care of the rest (up to +50%). In my opinion, more than lvl 1 in the training skill is a waste of runes.
- as a warrior, level 3 rage is also a moot. Since you'll push up the Blood thirst skill (meaning you'll retain a certain amount of rage), more than lvl 2 in the rage skill is not needed.
- do now get overconfident with the dragon. Against bosses, you cannot summon him. This means you lose one great asset, and you need to compensate for it with troops and skills.
And of course, good luck